1.1                          A bill for an act 
  1.2             relating to the organization and operation of state 
  1.3             government; appropriating money; appropriating money 
  1.4             for economic development and certain agencies of state 
  1.5             government; establishing and modifying certain 
  1.6             programs; providing for regulation of certain 
  1.7             activities and practices; standardizing certain 
  1.8             licensing service fees; establishing and modifying 
  1.9             certain fees; providing for the privatization of the 
  1.10            state fund mutual insurance company; amending 
  1.11            Minnesota Statutes 1996, sections 60A.23, subdivision 
  1.12            8; 60A.71, by adding a subdivision; 60K.06, 
  1.13            subdivision 2; 65B.48, subdivision 3; 72B.04, 
  1.14            subdivision 10; 79.253, subdivision 1; 79.255, by 
  1.15            adding a subdivision; 82.21, subdivision 1; 82B.09, 
  1.16            subdivision 1; 116L.04, subdivision 1; 155A.045, 
  1.17            subdivision 1; 176.181, subdivision 2a; 176A.02, 
  1.18            subdivision 2; 268.022, by adding a subdivision; 
  1.19            268.38, subdivision 7; 326.86, subdivision 1; 462A.05, 
  1.20            subdivision 30; 462A.201, subdivision 2; and 462A.21, 
  1.21            subdivision 12a; proposing coding for new law in 
  1.22            Minnesota Statutes, chapter 45; repealing Minnesota 
  1.23            Statutes 1996, sections 268.39; 462A.05, subdivision 
  1.24            20; 462A.2091; 462A.21, subdivisions 4k, 12, and 14; 
  1.25            and 462A.28. 
  1.26  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.27  Section 1.  [ECONOMIC DEVELOPMENT; APPROPRIATIONS.] 
  1.28     The sums shown in the columns marked "APPROPRIATIONS" are 
  1.29  appropriated from the general fund, or another named fund, to 
  1.30  the agencies and for the purposes specified in this act, to be 
  1.31  available for the fiscal years indicated for each purpose.  The 
  1.32  figures "1998" and "1999," where used in this act, mean that the 
  1.33  appropriation or appropriations listed under them are available 
  1.34  for the year ending June 30, 1998, or June 30, 1999, 
  1.35  respectively.  The term "first year" means the fiscal year 
  2.1   ending June 30, 1998, and "second year" means the fiscal year 
  2.2   ending June 30, 1999. 
  2.3                           SUMMARY BY FUND
  2.4                             1998          1999           TOTAL
  2.5   General              $178,123,000   $173,572,000   $351,695,000
  2.6   Petroleum Tank
  2.7   Cleanup                   957,000        780,000      1,737,000
  2.8   Trunk Highway             706,000        723,000      1,429,000 
  2.9   Workers'
  2.10  Compensation           22,639,000     22,686,000     45,325,000
  2.11  Special Revenue           345,000        350,000        695,000
  2.12  TOTAL                $202,770,000   $198,111,000   $400,881,000
  2.13                                             APPROPRIATIONS 
  2.14                                         Available for the Year 
  2.15                                             Ending June 30 
  2.16                                            1998         1999 
  2.17  Sec. 2.  TRADE AND ECONOMIC DEVELOPMENT 
  2.18  Subdivision 1.  Total 
  2.19  Appropriation                       $ 42,150,000   $ 37,573,000
  2.20                Summary by Fund
  2.21  General              41,444,000    36,850,000
  2.22  Trunk Highway           706,000       723,000 
  2.23  The amounts that may be spent from this 
  2.24  appropriation for each program are 
  2.25  specified in the following subdivisions.
  2.26  Subd. 2.  Business and Community 
  2.27  Development
  2.28       27,194,000     22,567,000
  2.29  Up to $4,444,000 the first year is for 
  2.30  state matching money for federal grants 
  2.31  to capitalize the drinking water 
  2.32  revolving loan fund under Minnesota 
  2.33  Statutes, section 446A.081.  The 
  2.34  expenditure is limited to the minimum 
  2.35  amount necessary to match the allotment 
  2.36  of federal money to Minnesota.  This is 
  2.37  a one-time appropriation and must not 
  2.38  be included in the budget base for the 
  2.39  biennium ending June 30, 2001. 
  2.40  $6,017,000 each year is for Minnesota 
  2.41  investment fund grants. 
  2.42  $2,000,000 each year is for grants from 
  2.43  the department of trade and economic 
  2.44  development to develop an educational 
  2.45  pathway where persons receiving public 
  2.46  assistance would be provided training 
  2.47  and education to fill a specific need 
  2.48  of an employer through a program 
  2.49  administered by the Minnesota job 
  2.50  skills partnership.  Any unencumbered 
  3.1   balance remaining in the first year 
  3.2   does not cancel but is available for 
  3.3   the second year of the biennium. 
  3.4   $500,000 each year is for grants to 
  3.5   Advantage Minnesota, Inc.  The funds 
  3.6   are available only if matched on at 
  3.7   least a dollar-for-dollar basis from 
  3.8   other sources.  The commissioner may 
  3.9   release the funds only upon: 
  3.10  (1) certification that matching funds 
  3.11  from each participating organization 
  3.12  are available; and 
  3.13  (2) review and approval by the 
  3.14  commissioner of the proposed operations 
  3.15  plan of Advantage Minnesota, Inc. for 
  3.16  the biennium. 
  3.17  $6,000,000 each year is for the job 
  3.18  skills partnership program.  
  3.19  $500,000 each year is for grants for 
  3.20  the contaminated cleanup program. 
  3.21  $250,000 the first year is for a grant 
  3.22  from the department of trade and 
  3.23  economic development to the Software 
  3.24  Technology Center to broaden 
  3.25  industry-related educational and 
  3.26  technological services.  This 
  3.27  appropriation is available upon 
  3.28  documentation of a dollar-for-dollar 
  3.29  match from other sources since the 
  3.30  inception of the Software Technology 
  3.31  Center.  This is a one-time 
  3.32  appropriation and must not be included 
  3.33  in the budget base for the biennium 
  3.34  ending June 30, 2001. 
  3.35  $2,000,000 is appropriated for each 
  3.36  year of the biennium to the department 
  3.37  of trade and economic development for 
  3.38  the purpose of an economic development 
  3.39  grant to the city of St. Paul.  This 
  3.40  grant is to support the costs of 
  3.41  developing the infrastructure and 
  3.42  facilities necessary to attract and 
  3.43  retain a professional sports franchise 
  3.44  in St. Paul.  The commissioner is 
  3.45  authorized to develop an agreement with 
  3.46  the city specifying the terms and 
  3.47  conditions of this grant.  This grant 
  3.48  may be made only after the commissioner 
  3.49  has determined that a franchise has 
  3.50  made a legally binding long-term 
  3.51  commitment to locate and operate in St. 
  3.52  Paul.  The agency must include a budget 
  3.53  request for $2,000,000 annually for 
  3.54  this purpose as part of the budget base 
  3.55  through the biennium ending June 30, 
  3.56  2007. 
  3.57  Subd. 3.  Minnesota Trade Office 
  3.58       2,452,000      2,336,000
  3.59  $250,000 the first year and $100,000 
  3.60  the second year is for a multifaceted 
  3.61  program to develop trade with China.  
  4.1   This is a one-time appropriation and 
  4.2   must not be included in the budget base 
  4.3   for the biennium ending June 30, 2001. 
  4.4   Subd. 4.  Tourism 
  4.5        8,125,000      8,205,000
  4.6                 Summary by Fund
  4.7   General               7,419,000     7,482,000
  4.8   Trunk Highway           706,000       723,000
  4.9   $500,000 each year is for grants from 
  4.10  the department of trade and economic 
  4.11  development to the Minnesota film board 
  4.12  for a film production jobs fund to 
  4.13  stimulate feature film production in 
  4.14  Minnesota.  This appropriation is to 
  4.15  reimburse film producers for two to 
  4.16  five percent of documented wages which 
  4.17  they paid to Minnesotans for film 
  4.18  production after January 1, 1997. 
  4.19  Subd. 5.  Administration 
  4.20       2,971,000      3,028,000
  4.21  Subd. 6.  Information and Analysis
  4.22       1,408,000      1,437,000
  4.23  Sec. 3.  MINNESOTA TECHNOLOGY, INC.    9,412,000      9,412,000
  4.24  $8,105,000 each year is for transfer 
  4.25  from the general fund to the Minnesota 
  4.26  Technology, Inc. fund. 
  4.27  $2,000,000 each year is for a 
  4.28  technology partnership fund to make 
  4.29  investments of $20,000 to $100,000 in 
  4.30  businesses partnering with faculty 
  4.31  members at Minnesota academic 
  4.32  institutions.  Any unencumbered balance 
  4.33  remaining in the first year does not 
  4.34  cancel but is available for the second 
  4.35  year of the biennium. 
  4.36  $75,000 each year is for grants to 
  4.37  Minnesota Inventors Congress. 
  4.38  $494,000 each year is for grants to 
  4.39  Minnesota Project Innovation.  
  4.40  $575,000 each year is for grants to the 
  4.41  Natural Resources Research Institute. 
  4.42  $88,000 each year is for grants to 
  4.43  Minnesota Council for Quality. 
  4.44  $75,000 each year is for grants to 
  4.45  Minnesota Cold Weather Research Center. 
  4.46  Sec. 4.  WORLD TRADE CENTER CORP.        217,000 
  4.47  $217,000 the first year is to retire 
  4.48  the debt of the Minnesota World Trade 
  4.49  Center.  In addition, the Minnesota 
  4.50  trade office may transfer $50,000 each 
  4.51  year to the World Trade Center for 
  5.1   services to agencies, nonprofit and 
  5.2   public organizations. 
  5.3   Sec. 5.  ECONOMIC SECURITY            30,816,000     29,964,000 
  5.4   Subdivision 1.  Rehabilitation Services
  5.5       18,438,000     18,433,000
  5.6   Subd. 2.  State Services for the Blind 
  5.7        3,735,000      3,816,000
  5.8   This appropriation may be supplemented 
  5.9   by funds provided by the Friends of the 
  5.10  Communication Center, for support of 
  5.11  Services for the Blind's Communication 
  5.12  Center, which serves all blind and 
  5.13  visually handicapped Minnesotans.  The 
  5.14  commissioner shall report to the 
  5.15  legislature on a biennial basis the 
  5.16  funds provided by the Friends of the 
  5.17  Communication Center. 
  5.18  Subd. 3.  Workforce Preparation 
  5.19       7,043,000      6,305,000
  5.20  $650,000 each year is for youth 
  5.21  intervention programs under Minnesota 
  5.22  Statutes, section 268.30. 
  5.23  Notwithstanding Minnesota Statutes, 
  5.24  section 268.022, subdivision 2, the 
  5.25  commissioner of finance shall transfer 
  5.26  to the general fund from the dedicated 
  5.27  fund $6,500,000 each year of the money 
  5.28  collected through the special 
  5.29  assessment established in Minnesota 
  5.30  Statutes, section 268.022, subdivision 
  5.31  1. 
  5.32  Of the money appropriated for the 
  5.33  summer youth employment programs for 
  5.34  the first year, $750,000 is immediately 
  5.35  available.  Any remaining balance of 
  5.36  the immediately available money is 
  5.37  available for the year in which it is 
  5.38  appropriated. 
  5.39  Subd. 4.  Workforce Exchange 
  5.40       1,600,000      1,400,000
  5.41  $1,600,000 the first year and 
  5.42  $1,400,000 the second year is 
  5.43  appropriated to leverage federal 
  5.44  dollars in support of the 
  5.45  implementation of the Minnesota 
  5.46  Workforce Center System.  The 
  5.47  department shall report to the 
  5.48  Minnesota office of technology its 
  5.49  plans to coordinate workforce center 
  5.50  development with the Minnesota career 
  5.51  education planning system and other 
  5.52  electronic job banks.  This is a 
  5.53  one-time appropriation and must not be 
  5.54  added to the budget base for the 
  5.55  biennium ending June 30, 2001. 
  5.56  Sec. 6.  HOUSING FINANCE AGENCY       24,007,000     24,007,000
  6.1   This appropriation is for transfer to 
  6.2   the housing development fund for the 
  6.3   programs specified.  This transfer is 
  6.4   part of the agency's permanent budget 
  6.5   base. 
  6.6   Any state appropriations used to meet 
  6.7   match requirements under Title II of 
  6.8   the National Affordable Housing Act of 
  6.9   1990, Public Law Number 101-625, 104 
  6.10  Stat. 4079, must be repaid, to the 
  6.11  extent required by federal law, to the 
  6.12  HOME Investment Trust Fund established 
  6.13  by the department of housing and urban 
  6.14  development pursuant to Title II of the 
  6.15  National Affordable Housing Act of 1990 
  6.16  for the state of Minnesota or for the 
  6.17  appropriate participating jurisdiction. 
  6.18  State appropriations to the Minnesota 
  6.19  housing finance agency may be granted 
  6.20  by the agency to cities or nonprofit 
  6.21  organizations to the extent necessary 
  6.22  to meet match requirements under Title 
  6.23  II of the National Affordable Housing 
  6.24  Act of 1990, Public Law Number 101-625, 
  6.25  104 Stat. 4079, provided that other 
  6.26  program requirements are met. 
  6.27  Spending limit on cost of general 
  6.28  administration of agency programs:  
  6.29         1998           1999
  6.30      11,017,000     11,678,000
  6.31  Sec. 7.  COMMERCE 
  6.32  Subdivision 1.  Total 
  6.33  Appropriation                         16,004,000     16,178,000
  6.34                Summary by Fund
  6.35  General              14,240,000    14,572,000
  6.36  Petro Cleanup           957,000       780,000 
  6.37  Workers' Compensation   462,000       476,000
  6.38  Special Revenue         345,000       350,000 
  6.39  The amounts that may be spent from this 
  6.40  appropriation for each program are 
  6.41  specified in the following subdivisions.
  6.42  Subd. 2.  Financial Examinations 
  6.43       3,802,000      3,883,000
  6.44  Subd. 3.  Registration and Insurance 
  6.45       4,479,000      4,950,000
  6.46                Summary by Fund
  6.47  General               4,017,000     4,114,000
  6.48  Workers' Compensation   462,000       476,000 
  6.49  Subd. 4.  Enforcement and Licensing 
  7.1        3,945,000      4,031,000
  7.2                 Summary by Fund
  7.3   General               3,600,000     3,681,000
  7.4   Special Revenue         345,000       350,000
  7.5   $345,000 the first year and $350,000 
  7.6   the second year is from the real estate 
  7.7   education, research, and recovery 
  7.8   account in the special revenue fund for 
  7.9   the purpose of Minnesota Statutes, 
  7.10  section 82.34, subdivision 6.  If the 
  7.11  appropriation from the special revenue 
  7.12  fund for either year is insufficient, 
  7.13  the appropriation for the other year is 
  7.14  available for it. 
  7.15  Subd. 5.  Petroleum Tank Release 
  7.16  Cleanup Board 
  7.17         957,000        780,000
  7.18  This appropriation is from the 
  7.19  petroleum tank release cleanup fund. 
  7.20  Subd. 6.  Administrative Services 
  7.21       2,821,000      2,894,000 
  7.22  Sec. 8.  BOARD OF ACCOUNTANCY            572,000        587,000
  7.23  Sec. 9.  BOARD OF ARCHITECTURE,
  7.24  ENGINEERING, LAND SURVEYING, 
  7.25  LANDSCAPE ARCHITECTURE, AND 
  7.26  INTERIOR DESIGN                          684,000        700,000 
  7.27  Sec. 10.  BOARD OF BARBER   
  7.28  EXAMINERS                                136,000        140,000
  7.29  Sec. 11.  BOARD OF BOXING                 79,000         82,000
  7.30  Sec. 12.  LABOR AND INDUSTRY 
  7.31  Subdivision 1.  Total 
  7.32  Appropriation                         24,825,000     24,883,000
  7.33                Summary by Fund
  7.34  General               4,112,000     4,171,000
  7.35  Workers' 
  7.36  Compensation         20,713,000    20,712,000
  7.37  The amounts that may be spent from this 
  7.38  appropriation for each program are 
  7.39  specified in the following subdivisions.
  7.40  Subd. 2.  Workers' Compensation
  7.41      11,927,000     11,935,000
  7.42                Summary by Fund
  7.43  General                 100,000       100,000
  7.44  Workers' 
  7.45  Compensation         11,827,000    11,835,000
  7.46  $100,000 each year is for grants to the 
  8.1   Vinland Center for rehabilitation 
  8.2   service. 
  8.3   Subd. 3.  Workplace Services 
  8.4        5,353,000      5,339,000
  8.5                 Summary by Fund
  8.6   General               2,875,000     2,931,000
  8.7   Workers'
  8.8   Compensation          3,458,000     3,722,000
  8.9   Subd. 4.  General Support 
  8.10       5,922,000      5,929,000
  8.11                Summary by Fund
  8.12  General               1,137,000     1,140,000
  8.13  Workers' 
  8.14  Compensation          5,428,000     5,155,000
  8.15  $204,000 each year is for labor 
  8.16  education and advancement program 
  8.17  grants.  
  8.18  Subd. 5.  Daedalus Project
  8.19  $2,500,000 appropriated in Laws 1995, 
  8.20  chapter 224, section 12, subdivision 2, 
  8.21  from the workers' compensation fund for 
  8.22  the Daedalus imaging project does not 
  8.23  cancel on June 30, 1997, but is 
  8.24  available until June 30, 1999. 
  8.25  Sec. 13.  MEDIATION SERVICES 
  8.26  Subdivision 1.  Total
  8.27  Appropriation                          2,061,000      2,074,000
  8.28  The amounts that may be spent from this 
  8.29  appropriation for each program are 
  8.30  specified in the following subdivisions.
  8.31  Subd. 2.  Mediation Services
  8.32       1,646,000      1,659,000
  8.33  Subd. 3.  Labor Management Cooperation Grants
  8.34         302,000        302,000
  8.35  $302,000 each year is for grants to 
  8.36  area labor-management committees.  Any 
  8.37  unencumbered balance remaining at the 
  8.38  end of the first year does not cancel 
  8.39  but is available for the second year. 
  8.40  Subd. 4.  Office of Dispute Resolution
  8.41         113,000        113,000
  8.42  Sec. 14.  WORKERS' COMPENSATION 
  8.43  COURT OF APPEALS                       1,464,000      1,498,000
  8.44  This appropriation is from the workers' 
  8.45  compensation fund. 
  9.1   Sec. 15.  LABOR INTERPRETIVE 
  9.2   CENTER                                   207,000        214,000
  9.3   Sec. 16.  PUBLIC UTILITIES  
  9.4   COMMISSION                             3,326,000      3,400,000
  9.5   Sec. 17.  DEPARTMENT OF PUBLIC SERVICE 
  9.6   Subdivision 1.  Total       
  9.7   Appropriation                          9,008,000      9,116,000
  9.8   The amounts that may be spent from this 
  9.9   appropriation for each program are 
  9.10  specified in the following subdivisions.
  9.11  Subd. 2.  Telecommunications
  9.12         785,000        803,000
  9.13  Subd. 3.  Weights and Measures 
  9.14       3,076,000      3,070,000
  9.15  Subd. 4.  Information and Operations 
  9.16  Management 
  9.17       1,501,000      1,532,000
  9.18  Subd. 5.  Energy 
  9.19       3,646,000      3,711,000
  9.20  $588,000 each year is for transfer to 
  9.21  the energy and conservation account 
  9.22  established in Minnesota Statutes, 
  9.23  section 216B.241, subdivision 2a, for 
  9.24  programs administered by the 
  9.25  commissioner of economic security to 
  9.26  improve the energy efficiency of 
  9.27  residential oil-fired heating plants in 
  9.28  low-income households and, when 
  9.29  necessary, to provide weatherization 
  9.30  services to the homes. 
  9.31  Sec. 18.  MINNESOTA HISTORICAL 
  9.32  SOCIETY 
  9.33  Subdivision 1.  Total       
  9.34  Appropriation                         22,670,000     23,106,000
  9.35  The amounts that may be spent from this 
  9.36  appropriation for each program are 
  9.37  specified in the following subdivisions.
  9.38  Subd. 2.  Education and
  9.39  Outreach
  9.40      11,588,000     11,903,000
  9.41  $8,414,000 the first year and 
  9.42  $8,678,000 the second year is for 
  9.43  historic places and outreach.  Of this 
  9.44  amount, $150,000 each year is for 
  9.45  expenses associated with the 
  9.46  sesquicentennial and millennium 
  9.47  celebrations. 
  9.48  $3,174,000 the first year and 
  9.49  $3,225,000 the second year is for 
  9.50  history center building services. 
 10.1   Subd. 3.  Preservation and Access
 10.2        8,661,000      8,828,000
 10.3   $6,173,000 the first year and 
 10.4   $6,229,000 the second year is for 
 10.5   collection services. 
 10.6   $2,488,000 the first year and 
 10.7   $2,529,000 the second year is for 
 10.8   history center building services. 
 10.9   Subd. 4.  Information Program 
 10.10  Delivery 
 10.11       2,095,000      2,097,000
 10.12  $2,000,000 each year is for technology 
 10.13  improvements that will expand core 
 10.14  capacity and improve service and 
 10.15  program delivery.  Money spent from 
 10.16  this appropriation for system 
 10.17  development must not be included in the 
 10.18  budget base for the biennium ending 
 10.19  June 30, 2001. 
 10.20  Subd. 5.  Fiscal Agent                   326,000        278,000
 10.21  (a) Sibley House Association 
 10.22          88,000         88,000
 10.23  This appropriation is available for 
 10.24  operation and maintenance of the Sibley 
 10.25  house and related buildings on the Old 
 10.26  Mendota state historic site operated by 
 10.27  the Sibley house association.  
 10.28  (b) Minnesota International Center 
 10.29          50,000         50,000
 10.30  (c) Minnesota Air National   
 10.31  Guard Museum 
 10.32          19,000 
 10.33  (d) Institute for Learning and
 10.34  Teaching - Project 120
 10.35          90,000         90,000 
 10.36  (e) Minnesota Military Museum
 10.37          29,000        
 10.38  (f) Farmamerica
 10.39          50,000         50,000 
 10.40  Notwithstanding any other law, this 
 10.41  appropriation may be used for 
 10.42  operations. 
 10.43  (g) Balances Forward
 10.44  Any unencumbered balance remaining in 
 10.45  this subdivision the first year does 
 10.46  not cancel but is available for the 
 10.47  second year of the biennium. 
 11.1   Sec. 19.  MINNESOTA HUMANITIES 
 11.2   COMMISSION                               586,000        586,000
 11.3   Sec. 20.  BOARD OF THE ARTS        
 11.4   Subdivision 1.  Total Appropriation   13,018,000     13,036,000
 11.5   Any unencumbered balance remaining in 
 11.6   this section the first year does not 
 11.7   cancel but is available for the second 
 11.8   year of the biennium. 
 11.9   Subd. 2.  Operations and Services
 11.10         988,000      1,006,000
 11.11  Subd. 3.  Grants Program
 11.12       8,518,000      8,518,000
 11.13  Subd. 4.  Regional Arts
 11.14  Councils
 11.15       3,512,000      3,512,000
 11.16  Sec. 21.  MINNESOTA MUNICIPAL
 11.17  BOARD                                    307,000        315,000
 11.18  Sec. 22.  COUNCIL ON BLACK
 11.19  MINNESOTANS                              246,000        251,000
 11.20  $7,500 each year is for expenses 
 11.21  associated with the Dr. Martin Luther 
 11.22  King Day activities. 
 11.23  Sec. 23.  COUNCIL ON 
 11.24  CHICANO-LATINO AFFAIRS                   265,000        270,000
 11.25  Sec. 24.  COUNCIL ON
 11.26  ASIAN-PACIFIC MINNESOTANS                222,000        219,000
 11.27  Sec. 25.  INDIAN AFFAIRS
 11.28  COUNCIL                                  488,000        500,000
 11.29     Sec. 26.  [45.0295] [FEES.] 
 11.30     (a) The following fees shall be paid to the commissioner: 
 11.31     (1) for a letter of certification of licensure, $10; 
 11.32     (2) for a license history, $20; 
 11.33     (3) for a duplicate license, $10; 
 11.34     (4) for a change of name or address, $10; 
 11.35     (5) for a temporary license, $10; 
 11.36     (6) for each hour or fraction of one hour of course 
 11.37  approval for continuing education sought, $10; and 
 11.38     (7) for each continuing education course coordinator 
 11.39  approval, $100. 
 11.40     (b) All fees paid to the commissioner under this section 
 11.41  are nonrefundable, except that an overpayment of a fee shall be 
 11.42  returned upon proper application. 
 12.1      Sec. 27.  Minnesota Statutes 1996, section 60A.23, 
 12.2   subdivision 8, is amended to read: 
 12.3      Subd. 8.  [SELF-INSURANCE OR INSURANCE PLAN ADMINISTRATORS 
 12.4   WHO ARE VENDORS OF RISK MANAGEMENT SERVICES.] (1)  [SCOPE.] This 
 12.5   subdivision applies to any vendor of risk management services 
 12.6   and to any entity which administers, for compensation, a 
 12.7   self-insurance or insurance plan.  This subdivision does not 
 12.8   apply (a) to an insurance company authorized to transact 
 12.9   insurance in this state, as defined by section 60A.06, 
 12.10  subdivision 1, clauses (4) and (5); (b) to a service plan 
 12.11  corporation, as defined by section 62C.02, subdivision 6; (c) to 
 12.12  a health maintenance organization, as defined by section 62D.02, 
 12.13  subdivision 4; (d) to an employer directly operating a 
 12.14  self-insurance plan for its employees' benefits; (e) to an 
 12.15  entity which administers a program of health benefits 
 12.16  established pursuant to a collective bargaining agreement 
 12.17  between an employer, or group or association of employers, and a 
 12.18  union or unions; or (f) to an entity which administers a 
 12.19  self-insurance or insurance plan if a licensed Minnesota insurer 
 12.20  is providing insurance to the plan and if the licensed insurer 
 12.21  has appointed the entity administering the plan as one of its 
 12.22  licensed agents within this state. 
 12.23     (2)  [DEFINITIONS.] For purposes of this subdivision the 
 12.24  following terms have the meanings given them. 
 12.25     (a) "Administering a self-insurance or insurance plan" 
 12.26  means (i) processing, reviewing or paying claims, (ii) 
 12.27  establishing or operating funds and accounts, or (iii) otherwise 
 12.28  providing necessary administrative services in connection with 
 12.29  the operation of a self-insurance or insurance plan. 
 12.30     (b) "Employer" means an employer, as defined by section 
 12.31  62E.02, subdivision 2. 
 12.32     (c) "Entity" means any association, corporation, 
 12.33  partnership, sole proprietorship, trust, or other business 
 12.34  entity engaged in or transacting business in this state. 
 12.35     (d) "Self-insurance or insurance plan" means a plan 
 12.36  providing life, medical or hospital care, accident, sickness or 
 13.1   disability insurance for the benefit of employees or members of 
 13.2   an association, or a plan providing liability coverage for any 
 13.3   other risk or hazard, which is or is not directly insured or 
 13.4   provided by a licensed insurer, service plan corporation, or 
 13.5   health maintenance organization. 
 13.6      (e) "Vendor of risk management services" means an entity 
 13.7   providing for compensation actuarial, financial management, 
 13.8   accounting, legal or other services for the purpose of designing 
 13.9   and establishing a self-insurance or insurance plan for an 
 13.10  employer. 
 13.11     (3)  [LICENSE.] No vendor of risk management services or 
 13.12  entity administering a self-insurance or insurance plan may 
 13.13  transact this business in this state unless it is licensed to do 
 13.14  so by the commissioner.  An applicant for a license shall state 
 13.15  in writing the type of activities it seeks authorization to 
 13.16  engage in and the type of services it seeks authorization to 
 13.17  provide.  The license may be granted only when the commissioner 
 13.18  is satisfied that the entity possesses the necessary 
 13.19  organization, background, expertise, and financial integrity to 
 13.20  supply the services sought to be offered.  The commissioner may 
 13.21  issue a license subject to restrictions or limitations upon the 
 13.22  authorization, including the type of services which may be 
 13.23  supplied or the activities which may be engaged in.  The license 
 13.24  fee is ~~$100~~ $500 for the initial application and $500 for each 
 13.25  two-year renewal.  All licenses are for a period of two years. 
 13.26     (4)  [REGULATORY RESTRICTIONS; POWERS OF THE COMMISSIONER.] 
 13.27  To assure that self-insurance or insurance plans are financially 
 13.28  solvent, are administered in a fair and equitable fashion, and 
 13.29  are processing claims and paying benefits in a prompt, fair, and 
 13.30  honest manner, vendors of risk management services and entities 
 13.31  administering insurance or self-insurance plans are subject to 
 13.32  the supervision and examination by the commissioner.  Vendors of 
 13.33  risk management services, entities administering insurance or 
 13.34  self-insurance plans, and insurance or self-insurance plans 
 13.35  established or operated by them are subject to the trade 
 13.36  practice requirements of sections 72A.19 to 72A.30.  In lieu of 
 14.1   an unlimited guarantee from a parent corporation for a vendor of 
 14.2   risk management services or an entity administering insurance or 
 14.3   self-insurance plans, the commissioner may accept a surety bond 
 14.4   in a form satisfactory to the commissioner in an amount equal to 
 14.5   120 percent of the total amount of claims handled by the 
 14.6   applicant in the prior year.  If at any time the total amount of 
 14.7   claims handled during a year exceeds the amount upon which the 
 14.8   bond was calculated, the administrator shall immediately notify 
 14.9   the commissioner.  The commissioner may require that the bond be 
 14.10  increased accordingly. 
 14.11     (5)  [RULEMAKING AUTHORITY.] To carry out the purposes of 
 14.12  this subdivision, the commissioner may adopt rules pursuant to 
 14.13  sections 14.001 to 14.69.  These rules may: 
 14.14     (a) establish reporting requirements for administrators of 
 14.15  insurance or self-insurance plans; 
 14.16     (b) establish standards and guidelines to assure the 
 14.17  adequacy of financing, reinsuring, and administration of 
 14.18  insurance or self-insurance plans; 
 14.19     (c) establish bonding requirements or other provisions 
 14.20  assuring the financial integrity of entities administering 
 14.21  insurance or self-insurance plans; or 
 14.22     (d) establish other reasonable requirements to further the 
 14.23  purposes of this subdivision. 
 14.24     Sec. 28.  Minnesota Statutes 1996, section 60A.71, is 
 14.25  amended by adding a subdivision to read: 
 14.26     Subd. 7.  [FEES.] Each applicant for a reinsurance 
 14.27  intermediary license shall pay to the commissioner a fee of $160 
 14.28  for an initial two-year license, and a fee of $120 for each 
 14.29  renewal.  Applications shall be submitted on forms prescribed by 
 14.30  the commissioner. 
 14.31     Sec. 29.  Minnesota Statutes 1996, section 60K.06, 
 14.32  subdivision 2, is amended to read: 
 14.33     Subd. 2.  [LICENSING FEES.] (a) In addition to the fees and 
 14.34  charges provided for examinations, each agent licensed pursuant 
 14.35  to section 60K.03 shall pay to the commissioner: 
 14.36     (1) a fee of $60 per license for an initial license issued 
 15.1   to an individual agent, and a fee of $60 for each renewal; 
 15.2      (2) a fee of $160 for an initial license issued to a 
 15.3   partnership, limited liability company, or corporation, and a 
 15.4   fee of $120 for each renewal; 
 15.5      (3) a fee of $75 for an initial amendment (variable 
 15.6   annuity) to a license, and a fee of $50 for each renewal; and 
 15.7      (4) a fee of $500 for an initial surplus lines agent's 
 15.8   license, and a fee of $500 for each renewal~~;~~ 
 15.9      ~~(5) for issuing a duplicate license, $10; and~~ 
 15.10     ~~(6) for issuing licensing histories, $20~~. 
 15.11     (b) Persons whose applications have been properly and 
 15.12  timely filed who have not received notice of denial of renewal 
 15.13  are approved for renewal and may continue to transact business 
 15.14  whether or not the renewed license has been received on or 
 15.15  before November 1 of the renewal year.  Applications for renewal 
 15.16  of a license are timely filed if received by the commissioner on 
 15.17  or before the 15th day preceding the license renewal date of the 
 15.18  applicant on forms duly executed and accompanied by appropriate 
 15.19  fees.  An application mailed is considered timely filed if 
 15.20  addressed to the commissioner, with proper postage, and 
 15.21  postmarked on or before the 15th day preceding the licensing 
 15.22  renewal date of the applicant. 
 15.23     (c) Initial licenses issued under this section must be 
 15.24  valid for a period not to exceed two years.  The commissioner 
 15.25  shall assign an expiration date to each initial license so that 
 15.26  approximately one-half of all licenses expire each year.  Each 
 15.27  initial license must expire on October 31 of the expiration year 
 15.28  assigned by the commissioner. 
 15.29     (d) All fees shall be retained by the commissioner and are 
 15.30  nonreturnable, except that an overpayment of any fee must be 
 15.31  refunded upon proper application. 
 15.32     Sec. 30.  Minnesota Statutes 1996, section 65B.48, 
 15.33  subdivision 3, is amended to read: 
 15.34     Subd. 3.  Self-insurance, subject to approval of the 
 15.35  commissioner, is effected by filing with the commissioner in 
 15.36  satisfactory form: 
 16.1      (1) a continuing undertaking by the owner or other 
 16.2   appropriate person to pay tort liabilities or basic economic 
 16.3   loss benefits, or both, and to perform all other obligations 
 16.4   imposed by sections 65B.41 to 65B.71; 
 16.5      (2) evidence that appropriate provision exists for prompt 
 16.6   administration of all claims, benefits, and obligations provided 
 16.7   by sections 65B.41 to 65B.71; 
 16.8      (3) evidence that reliable financial arrangements, 
 16.9   deposits, or commitments exist providing assurance, 
 16.10  substantially equivalent to that afforded by a policy of 
 16.11  insurance complying with sections 65B.41 to 65B.71, for payment 
 16.12  of tort liabilities, basic economic loss benefits, and all other 
 16.13  obligations imposed by sections 65B.41 to 65B.71; and 
 16.14     (4) a nonrefundable initial application fee of $500 and an 
 16.15  annual renewal fee of $100 for political subdivisions and $250 
 16.16  for nonpolitical entities.  
 16.17     Sec. 31.  Minnesota Statutes 1996, section 72B.04, 
 16.18  subdivision 10, is amended to read: 
 16.19     Subd. 10.  [FEES.] A fee of $40 is imposed for each initial 
 16.20  license or temporary permit and $25 for each renewal thereof or 
 16.21  amendment thereto.  ~~A fee of $20 is imposed for each examination~~ 
 16.22  ~~taken.~~  A fee of $20 is imposed for the registration of each 
 16.23  nonlicensed adjuster who is required to register under section 
 16.24  72B.06.  All fees shall be transmitted to the commissioner and 
 16.25  shall be payable to the state treasurer.  If a fee is paid for 
 16.26  an examination and if within one year from the date of that 
 16.27  payment no written request for a refund is received by the 
 16.28  commissioner or the examination for which the fee was paid is 
 16.29  not taken, the fee is forfeited to the state of Minnesota. 
 16.30     Sec. 32.  Minnesota Statutes 1996, section 79.253, 
 16.31  subdivision 1, is amended to read: 
 16.32     Subdivision 1.  [CREATION OF ACCOUNT.] There is created the 
 16.33  assigned risk safety account as a separate account in the 
 16.34  special compensation fund in the state treasury.  Income earned 
 16.35  by funds in the account must be credited to the account.  
 16.36  Principal and income of the account are annually appropriated to 
 17.1   the commissioner of labor and industry ~~and must be used for~~ 
 17.2   ~~grants and loans under this section~~ to establish and promote 
 17.3   workplace safety and health programs. 
 17.4      Sec. 33.  Minnesota Statutes 1996, section 79.255, is 
 17.5   amended by adding a subdivision to read: 
 17.6      Subd. 10.  [FEE.] A registration or exemption certificate 
 17.7   fee of $50 shall be paid. 
 17.8      Sec. 34.  Minnesota Statutes 1996, section 82.21, 
 17.9   subdivision 1, is amended to read: 
 17.10     Subdivision 1.  [AMOUNTS.] The following fees shall be paid 
 17.11  to the commissioner: 
 17.12     (a) A fee of $150 for each initial individual broker's 
 17.13  license, and a fee of $100 for each renewal thereof; 
 17.14     (b) A fee of $70 for each initial salesperson's license, 
 17.15  and a fee of $40 for each renewal thereof; 
 17.16     (c) A fee of $85 for each initial real estate closing agent 
 17.17  license, and a fee of $60 for each renewal thereof; 
 17.18     (d) A fee of $150 for each initial corporate, limited 
 17.19  liability company, or partnership license, and a fee of $100 for 
 17.20  each renewal thereof; 
 17.21     (e) A fee for payment to the education, research and 
 17.22  recovery fund in accordance with section 82.34; 
 17.23     (f) A fee of $20 for each transfer; 
 17.24     (g) ~~A fee of $50 for a corporation, limited liability~~ 
 17.25  ~~company, or partnership name change;~~ 
 17.26     ~~(h) A fee of $10 for an agent name change;~~ 
 17.27     ~~(i) A fee of $20 for a license history;~~ 
 17.28     ~~(j) A fee of $10 for a duplicate license;~~ 
 17.29     ~~(k)~~ A fee of $50 for license reinstatement; and 
 17.30     ~~(l)~~ (h) A fee of $20 for reactivating a corporate, limited 
 17.31  liability company, or partnership license without land~~;~~ 
 17.32     ~~(m) A fee of $100 for course coordinator approval; and~~ 
 17.33     ~~(n) A fee of $20 for each hour or fraction of one hour of~~ 
 17.34  ~~course approval sought~~. 
 17.35     Sec. 35.  Minnesota Statutes 1996, section 82B.09, 
 17.36  subdivision 1, is amended to read: 
 18.1      Subdivision 1.  [AMOUNTS.] The following fees must be paid 
 18.2   to the commissioner~~:~~ 
 18.3      ~~(1)~~ for each initial individual real estate appraiser's 
 18.4   license:  $150 if the license expires more than 12 months after 
 18.5   issuance, $100 if the license expires less than 12 months after 
 18.6   issuance; and a fee of $100 for each renewal~~;~~. 
 18.7      ~~(2) a fee of $10 for a change in personal name or trade~~ 
 18.8   ~~name or personal address or business location;~~ 
 18.9      ~~(3) a fee of $10 for a license history;~~ 
 18.10     ~~(4) a fee of $25 for a duplicate license;~~ 
 18.11     ~~(5) a fee of $100 for appraiser course coordinator~~ 
 18.12  ~~approval; and~~ 
 18.13     ~~(6) a fee of $10 for each hour or fraction of one hour of~~ 
 18.14  ~~course approval sought.~~ 
 18.15     Sec. 36.  Minnesota Statutes 1996, section 116L.04, 
 18.16  subdivision 1, is amended to read: 
 18.17     Subdivision 1.  [GRANTS-IN-AID.] (a) The partnership may 
 18.18  provide grants-in-aid to educational or other nonprofit 
 18.19  institutions using the following guidelines:  
 18.20     (1) the educational or other nonprofit institution is a 
 18.21  provider of training within the state in either the public or 
 18.22  private sector; 
 18.23     (2) the program involves skills training that is an area of 
 18.24  employment need; and 
 18.25     (3) preference will be given to educational or other 
 18.26  nonprofit institutions which serve economically disadvantaged 
 18.27  people, minorities, or those who are victims of economic 
 18.28  dislocation and to businesses located in rural areas.  
 18.29     (b) A single grant to any one institution shall not exceed 
 18.30  ~~$200,000~~ $400,000.  
 18.31     Sec. 37.  Minnesota Statutes 1996, section 155A.045, 
 18.32  subdivision 1, is amended to read: 
 18.33     Subdivision 1.  [SCHEDULE.] The fee schedule for licensees 
 18.34  is as follows: 
 18.35     (a) Three-year license fees: 
 18.36     (1) cosmetologist, manicurist, esthetician, $45 for each 
 19.1   initial license and $30 for each renewal; 
 19.2      (2) instructor, manager, $60 for each initial license, 
 19.3   and $45 for each renewal; 
 19.4      (3) salon, $65 for each initial license, and $50 for each 
 19.5   renewal; and 
 19.6      (4) school, $750. 
 19.7      (b) Penalties: 
 19.8      (1) reinspection fee, variable; and 
 19.9      (2) manager with lapsed practitioner, $25. 
 19.10     (c) Administrative fees: 
 19.11     (1) ~~duplicate license (includes individual name or address~~ 
 19.12  ~~change), $5;~~ 
 19.13     ~~(2)~~ certificate of identification, $20; 
 19.14     ~~(3) processing fee (covers licensing history or~~ 
 19.15  ~~certification of licensure, restoration of lapsed license, salon~~ 
 19.16  ~~name change, school name change, late renewals, applications for~~ 
 19.17  ~~new licenses), $15;~~ and 
 19.18     ~~(4)~~ (2) school original application, $150. 
 19.19     Sec. 38.  Minnesota Statutes 1996, section 176.181, 
 19.20  subdivision 2a, is amended to read: 
 19.21     Subd. 2a.  [APPLICATION FEE.] Every initial application 
 19.22  filed pursuant to subdivision 2 requesting authority to 
 19.23  self-insure shall be accompanied by a nonrefundable fee of 
 19.24  ~~$1,000~~ $2,500.  ~~The fee is not refundable.~~  When an employer 
 19.25  seeks to be added as a member of an existing approved group 
 19.26  under section 79A.03, subdivision 6, the proposed new member 
 19.27  shall pay a nonrefundable $250 application fee to the 
 19.28  commissioner at the time of application.  Each annual report due 
 19.29  August 1 under section 79A.03, subdivision 9, shall be 
 19.30  accompanied by an annual fee of $200. 
 19.31     Sec. 39.  Minnesota Statutes 1996, section 176A.02, 
 19.32  subdivision 2, is amended to read: 
 19.33     Subd. 2.  [BOARD OF DIRECTORS.] The board of directors 
 19.34  consists of seven members and the commissioner of labor and 
 19.35  industry and the manager of the fund who shall be ex officio 
 19.36  members.  Each director shall hold office until a successor is 
 20.1   appointed and qualifies.  Each director shall represent a 
 20.2   policyholder and may be an employee of a policyholder.  A 
 20.3   policyholder may designate a person to represent them on the 
 20.4   board.  The initial board of directors shall be appointed by the 
 20.5   governor and shall consist of seven members and the commissioner 
 20.6   of labor and industry.  Each member of the initial board shall 
 20.7   be either an employer or employee.  If the fund is operational 
 20.8   and issuing policies upon the expiration of the terms of the 
 20.9   initial board and thereafter, the governor shall appoint every 
 20.10  other director until the governor has made four appointments.  
 20.11  The remaining three directors shall be chosen by the fund's 
 20.12  policyholders.  In addition to the commissioner, no more than 
 20.13  one member of the board shall be a representative of a 
 20.14  governmental entity.  At least two members of the board shall 
 20.15  represent private, for profit, enterprises.  No member of the 
 20.16  board may represent or be an employee of an insurance company.  
 20.17     The membership terms shall be as provided in section 
 20.18  15.0575.  The membership compensation shall be set by the board. 
 20.19     The board shall annually elect a chair from among its 
 20.20  members and other officers it deems necessary for the 
 20.21  performance of its duties.  
 20.22     Upon the repayment of all principal and payment of the 
 20.23  associated accrued interest on the guaranty fund certificates 
 20.24  issued by the fund to the state of Minnesota, this subdivision 
 20.25  no longer applies.  On the date of repayment, the commissioner 
 20.26  of labor and industry shall no longer be a member of the fund's 
 20.27  board of directors.  The board seat shall be filled in the 
 20.28  manner prescribed by the fund's articles of incorporation to 
 20.29  fill unexpired terms of policyholder-elected board members.  At 
 20.30  their next annual meeting, policyholders shall elect an 
 20.31  individual to fill the board seat for a full term. 
 20.32     When governor-appointed board members' terms expire after 
 20.33  the date of repayment, they will be replaced by board members 
 20.34  elected by the fund's policyholders. 
 20.35     Terms of the board members shall continue to be in 
 20.36  accordance with section 15.0575 until such time as the 
 21.1   policyholders amend the fund's articles of incorporation 
 21.2   specifying a different term. 
 21.3      Any guaranty fund certificates held by a person other than 
 21.4   the state of Minnesota shall have voting rights as provided in 
 21.5   the certificates and chapter 66A. 
 21.6      Sec. 40.  Minnesota Statutes 1996, section 268.022, is 
 21.7   amended by adding a subdivision to read: 
 21.8      Subd. 3.  [FUNDS RESERVED FOR COMPREHENSIVE HEALTH 
 21.9   ASSOCIATION.] Prior to an allocation under subdivision 2, 
 21.10  paragraph (a) and paragraph (e), clauses (1) and (2), the 
 21.11  commissioner shall reserve $8,000,000 annually for the purpose 
 21.12  of paying for claims expenses and operating and administrative 
 21.13  expenses of the Minnesota comprehensive health association 
 21.14  created under section 62E.10.  Before allocating any funds, the 
 21.15  commissioner shall receive from the commissioner of commerce 
 21.16  certification to the extent expenses of the association exceed 
 21.17  premiums received.  Any balance of the amount reserved which 
 21.18  remains after payment of the amount certified in any year shall 
 21.19  be released back to the workforce investment fund. 
 21.20     Sec. 41.  Minnesota Statutes 1996, section 268.38, 
 21.21  subdivision 7, is amended to read: 
 21.22     Subd. 7.  [FUNDING COORDINATION.] Grant recipients shall 
 21.23  combine funds awarded under this section with other funds from 
 21.24  public and private sources. ~~Programs receiving funds under this~~ 
 21.25  ~~section are also eligible for assistance under section 462A.05,~~ 
 21.26  ~~subdivision 20.~~  
 21.27     Sec. 42.  Minnesota Statutes 1996, section 326.86, 
 21.28  subdivision 1, is amended to read: 
 21.29     Subdivision 1.  [LICENSING FEE.] The licensing fee for 
 21.30  persons licensed pursuant to sections 326.83 to 326.991 is $75 
 21.31  per year.  The commissioner may adjust the fees under section 
 21.32  16A.1285 to recover the costs of administration and 
 21.33  enforcement.  The fees must be limited to the cost of license 
 21.34  administration and enforcement and must be deposited in the 
 21.35  state treasury and credited to the general fund.  ~~A fee of $25~~ 
 21.36  ~~will be charged for a duplicate license or an amended license~~ 
 22.1   ~~reflecting a change of business name, address, or qualifying~~ 
 22.2   ~~person.~~ 
 22.3      Sec. 43.  Minnesota Statutes 1996, section 462A.05, 
 22.4   subdivision 30, is amended to read: 
 22.5      Subd. 30.  [AGENCY INVESTMENT IN CERTAIN NOTES AND 
 22.6   MORTGAGES.] It may invest in, purchase, acquire, and take 
 22.7   assignments of existing notes and mortgages not closed for the 
 22.8   purpose of sale to the agency, from lenders that are nonprofit 
 22.9   or nonprofit entities, as defined in the agency's rules, 
 22.10  provided that:  (1) the notes and mortgages evidence loans for 
 22.11  the construction, rehabilitation, purchase, improvement, or 
 22.12  refinancing of residential housing intended for occupancy and 
 22.13  occupied by low- and moderate-income persons and families; and 
 22.14  (2) the loan sellers utilize the funds derived from the 
 22.15  purchases in accordance with the authority contained in section 
 22.16  462A.07, subdivision 12, for the purposes and objectives of 
 22.17  sections 462A.02, 462A.03, 462A.05, 462A.07, and 462A.21; and 
 22.18  (3) the purchases are subject to security and limitations on the 
 22.19  costs and expenses of the loan sellers incidental to the 
 22.20  utilization of the purchase proceeds as the agency may 
 22.21  determine.  The proceeds of the purchases authorized by this 
 22.22  subdivision shall not be subject to the limitations of section 
 22.23  462A.21, subdivisions ~~4k, 6, 9, and 12~~ 6 and 9.  In addition, it 
 22.24  may invest in, purchase, acquire, and take assignments of 
 22.25  existing federally insured mortgages for multifamily housing, 
 22.26  not closed for the purpose of sale to the agency, from any 
 22.27  banking institution, savings association, or other lender or 
 22.28  financial intermediary approved by the members; provided that 
 22.29  the multifamily housing is benefited by contracts for federal 
 22.30  housing assistance payments. 
 22.31     Sec. 44.  Minnesota Statutes 1996, section 462A.201, 
 22.32  subdivision 2, is amended to read: 
 22.33     Subd. 2.  [LOW-INCOME HOUSING.] (a) The agency may, in 
 22.34  consultation with the advisory committee, use money from the 
 22.35  housing trust fund account to provide loans or grants for 
 22.36  projects for the development, construction, acquisition, 
 23.1   preservation, and rehabilitation of low-income rental and 
 23.2   limited equity cooperative housing units, including temporary 
 23.3   and transitional housing, and homes for ownership.  Loans or 
 23.4   grants for residential housing for migrant farmworkers may be 
 23.5   made under this section.  No more than 20 percent of available 
 23.6   funds may be used for home ownership projects.  
 23.7      (b) A rental or limited equity cooperative permanent 
 23.8   housing project must meet one of the following income tests: 
 23.9      (1) at least 75 percent of the rental and cooperative units 
 23.10  must be rented to or cooperatively owned by persons and families 
 23.11  whose income does not exceed 30 percent of the median family 
 23.12  income for the metropolitan area as defined in section 473.121, 
 23.13  subdivision 2; or 
 23.14     (2) all of the units funded by the housing trust fund 
 23.15  account must be used for the benefit of persons and families 
 23.16  whose income does not exceed 30 percent of the median family 
 23.17  income for the metropolitan area as defined in section 473.121, 
 23.18  subdivision 2. 
 23.19     The median family income may be adjusted for families of 
 23.20  five or more. 
 23.21     (c) Homes for ownership must be owned or purchased by 
 23.22  persons and families whose income does not exceed 50 percent of 
 23.23  the metropolitan area median income, adjusted for family size. 
 23.24     (d) In making the grants, the agency shall determine the 
 23.25  terms and conditions of repayment and the appropriate security, 
 23.26  if any, should repayment be required.  To promote the geographic 
 23.27  distribution of grants and loans, the agency may designate a 
 23.28  portion of the grant or loan awards to be set aside for projects 
 23.29  located in specified congressional districts or other 
 23.30  geographical regions specified by the agency.  The agency may 
 23.31  adopt rules for awarding grants and loans under this subdivision.
 23.32     Sec. 45.  Minnesota Statutes 1996, section 462A.21, 
 23.33  subdivision 12a, is amended to read: 
 23.34     Subd. 12a.  [PROGRAM MONEY TRANSFER.] ~~Grants authorized~~ 
 23.35  ~~under section 462A.05, subdivision 20, may be made only with~~ 
 23.36  ~~specific appropriations by the legislature, but~~ Unencumbered 
 24.1   balances of money appropriated for the purpose of loans or 
 24.2   grants for agency programs under these subdivisions may be 
 24.3   transferred between programs created by these subdivisions or in 
 24.4   accordance with section 462A.20, subdivision 3. 
 24.5      Sec. 46.  [REPEALER.] 
 24.6      Minnesota Statutes 1996, sections 268.39; 462A.05, 
 24.7   subdivision 20; 462A.2091; 462A.21, subdivisions 4k, 12, and 14; 
 24.8   and 462A.28, are repealed.